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Receiving Procedures

P-1.12.1 - RECEIVING PROCEDURES

  1. When goods and/or services have been received, the department concerned completes the receiving on (FPARCVD) so it can be matched by Banner Finance. If the invoice is received with the shipment. It should be forwarded immediately to the Department of Financial and Administrative Services indicating the Purchase Order number and the Receiving Document number.

SUPPLIER INVOICE

  1. All supplier invoices are to be forwarded directly to the Department of Financial and Administrative Services unless prior arrangements have been made with the Director of Financial and Administrative Services, and not to the ordering department. This is required in order to expedite payment to the supplier in as effective and efficient a manner as possible.

PART SHIPMENTS

  1. Where only part orders are received, receiving on FPARCVD is completed for the items received.

VERIFICATION OF GOODS RECEIVED

  1. In all instances, it is the responsibility of the employee in charge of purchasing to ensure that the policy regarding incoming shipments and damaged shipments are complied with to guard against losses. The receiving report should clearly indicate short shipments or damaged shipments.

P-1.12.2 - EXTERIOR DAMAGE

  1. All shipments are delivered to the department to which they are consigned. It is the responsibility of the individual in each department assigned to receive shipments to take note of visible exterior damage in the form of broken cartons, or markings which indicate that the shipment may have received rough treatment in transit with consequent damage to the contents. Water damage could also harm the contents and should be looked for.
  2. It is the responsibility of the receiver to note on the carrier's delivery record the existence of any apparent damage.

P-1.12.3 - INTERIOR DAMAGE

  1. The receiver is expected to open parcels or cartons without delay to determine whether damage to the contents has in fact occurred.
  2. If damage is discovered, advise the carrier and arrange for an inspector to come and examine the damage. It is important that the wrappings, cartons, boxes or other containers be retained so that the inspector will be able to determine how the damage occurred. For this reason, the procedures for identifying exterior damage are very important.
  3. The inspector will prepare a report which he/she will leave with you to be used in preparing a claim.
  4. Frequently damage is not discovered until the parcel is opened. The damage should then be reported immediately to the inspector and action taken to place a claim.

P-1.12.4 - CLAIMS

  1. When a shipment is sent FOB the Factory, or FOB a city other than St. John's or Corner Brook, the consignor fulfils his responsibility when he delivers the shipment to the carrier. The supplier/consignor will expect his account to be paid in full. The consignee must look to the carrier for reimbursement for loss or damage. As some carriers have limited liability for damages, consideration should be given to have the supplier insure the shipment.
  2. Should the carrier decline responsibility on the ground that the shipment was improperly packed in the first place, you should notify the supplier and request reimbursement.
  3. A claim against a carrier for loss or damage requires the submission of the following documents:
    1. The original copy of the bill of lading (or a bond of indemnity in lieu thereof).
    2. The receipted copy of the expense (freight) bill.
    3. A certified copy of the supplier's invoice.
    4. A copy of the inspector's report.
  4. It will be noted that the filing of a claim involves much time, effort and expense. Trivial damage, as determined by the individual departments, should be overlooked.
  5. When a shipment is sent FOB destination, or FOB the University, it is the consignor's responsibility to ensure that the goods or equipment arrive intact. When loss or damage occurs in these instances, the receiving department is responsible to report the damage to the consignor using the consignor's standard loss claim form.

PARCEL POST

  1. When a parcel post shipment is received in a damaged condition, the damage should be reported to the supplier. The supplier will replace the damaged article, and place a claim against the Post Office. The carton wrappings and the damaged article are to be turned over to the Post Office when the claim arrives for verification.

P-1.12.5 - PROCEEDS

When a claim is placed against a carrier for loss or damage to a shipment, credit is to be passed to the account charged with the purchase.

P-1.12.6 - INCOMING SHIPMENTS

  1. All purchase orders should indicate whether a shipment is to be sent freight, collect or prepaid. If it reads FOB factory or FOB the city from which the shipment is sent, the charges are most likely collect.
  2. If the order reads FOB Memorial University or the city location of the University, the transportation charges are prepaid by the shipper. In this case, the University is not liable for shipping charges.
  3. Where possible, all purchase orders should indicate FOB University.

INSURANCE

  1. If the purchase can only be placed FOB shipping point, consideration should be given to requiring the shipper to include insurance on the shipment. This is important as some carriers have limited liability and, should the shipment be damaged in transit, you may only receive token recovery. The department will withstand the loss.

P-1.12.7 - INSPECTION

  1. Transport carriers should not leave a shipment if a receiving signature and inspection cannot be obtained.
  2. The department receiving the shipment is expected to check the packing slips to ensure the contents have been correctly received.
  3. All parcels, packages or cartons should be received unopened and free of any external damage. If damaged, see section 11 of this policy.
  4. It is the responsibility of the department receiving the shipment to check the contents against the packing slips enclosed by the supplier, and verify it against the purchase order.

P-1.12.8 - COLLECT CHARGES

  1. When collect charges are indicated on the delivery/packing slip, the department should notify the Department of Financial and Administrative Services and send the original bill with the completed receiving report to the Director of Financial and Administrative Services for payment.
  2. The packing slip constitutes the only billing to be received by the department for incoming collect charges and will have to be matched against the carrier's statement periodically.
  3. Departments should retain a copy for their files.

P-1.12.9 - PARCEL POST

Parcel post shipments are delivered directly by the mail room to the departments to which they are consigned.

Departments are responsible for checking the contents of parcel post shipments against the purchase order to ensure that all items ordered have been correctly received.

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